curtis cutter and BadDog, those are both good ideas. On a VFD the E-stop is a NC switch, that way if the lines, to the switch break it activate the stop mode (fail safe). I will install a micro switch, with a roller, that is NC. I can mount it under the pulley bracket and the cable tension will push on the roller, keeping the switch closed. If any part of the system breaks, the switch will open and stop the machine. This should not be difficult to add to the existing design.
The next part of the control system is to build a FWD/Stop/REV setup that works off the other original lever, anyway.
Harold, I would like to keep the handle working in the direction it was intended to, if possible.
Thanks for all the insight, guys.

I first started thinking about how to move the controls, to their original positions, shortly after I aquired the lathe. One of my earlier designs, used the rack and spur gear combo, with an adjustable rocking beam, with solid links to connect to the lathe. It is a bit more complicated, in mounting and connecting to the lathe, but it should solve some problems too.
It is all a learning process for me either way. I do enjoy making new things, instead of just repairing things.
Back to the drawing board! Literally!

I just added some color, to make easier for you to see, because I have learned how to do it now.
I am going to redo the lay out, but the concept will stay the same.

In this drawing, the spur gear goes between the gold plate and the red housing, with the potentiometer connected to it through the hole in the housing. The rack will connect to one end of the adjustable rocking beam and go through the housing, meshing with the rack gear, inside. The lever on the lathe will connect to the other end of the adjustable beam. Being able to adjust the pivot point of the beam, allows the adjustment of the ratio, of lathe's lever movement, to rack gear movement.

One of the earlier issues was the connection from the lathe's lever to the mechanism.
These are pictures of one of the lathe's levers. The other lever (that did not come with the lathe) operated the RWD/REV and is similar in design.

At the time, I did not know how to get the lever out of the lathe, short of removing the gear box. So I figured I was going to have to make the connection to that little ball on the end of the lever, while it was still in the lathe and that would not have been easy. So I sought an easier path, which lead me to try and mount a system up top, where the access seemed more doable. Now I am full circle, back to where I started. I do think this method will give me the best results, it will just take a bit more doing to get it done.

The pictures show the parts of the levers and how they are assembled, when in the lathe. The two bushings set the spacing of where the two levers will sit, in the narrow space, in the lathe, one above the other. The spacing allows them to bypass each other.
I will make new levers and a set of bushings for the fwd/off/rev switch. The switch will be mounted to the same plate as the rack and spur gear.
I am going to finish drawing it all out in Fusion360, so I can have some drawings when making the parts.
Much to do outside the shop too, with the weather getting nice in the NW.